Now is the best time to invest in cryptocurrency

Now is the best time to invest in cryptocurrency

Now is the best time to invest in cryptocurrency

At the moment when I am writing this post, the market capitalization of cryptocurrency has reached US$146 billion. The trading volume today is US$2.6 billion.  More and more people are aware of cryptocurrency and jumping on the bandwagon.  I can tell you, “Now is the best time to invest in cryptocurrency.”

The biggest news today.  Japan gives official endorsement to 11 cryptocurrency exchange.

The Japanese government recognized bitcoin as legal tender this April and now they want to endorse cryptocurrency exchange operators and register them as legitimate businesses.

This means that cryptocurrency will become more popular in Japan.  I believe other countries will follow; since there are lots of money to be made.  Many governments understand that bitcoin cannot be stopped.  Therefore, instead of trying to stop it and it is better to work with it.  They foresee bitcoin will bring more activities in the economy and bring more wealth to their citizen.  As it has already happened, bitcoin mining has bring a lot of wealth to Chinese bitcoin miners as well as a lot of bitcoin investors.

Other countries like Russia also want to help their citizens to mine bitcoin by providing cheap electricity.  It would be a good place for mining bitcoin because they don’t need any cooling fans since Russia is so cold.

Here are the reasons why I think now is the best time to invest in cryptocurrency.

  1. Cryptocurrencies are still at the early stage, if you get in early you will make money.
  2. I am actively trading the coin market and I can tell you that the gains are much better than trading shares.  Gains of 30% or more in a single day is not uncommon.  (But you must know what you are doing, you can make money quickly but you can also lose money quickly. My advice is to take some trading lessons before you start trading.  The other alternative is to start very small and slowly increase your investment when you get better at this game.)
  3. More countries and companies are starting to endorse and use bitcoin and other alt coins.
  4. More people are getting to know about cryptocurrency and one day it will become main stream.
  5. Although the price of bitcoin is going up and down daily in a volatile market, but it is still keeping the upward trend.  Some people believe bitcoin will worth over US$100,000 to 1 million in a few years.  These predictions could be over estimated, but if it increase in value by 5 to 10 times you will sure make some good money.

I had a discussion with one of my friends.  He told me he don’t believe in bitcoin because it has no backing like our money.  Do you think he is correct?

He is correct if he say it fifty years ago when money is back by gold.  At that time you can take you money to the bank and ask them to give you the gold.  Since 1971 President Nixon had taken the US dollars off the gold backing.  You can read this article – Nixon Ends Convertibility of US Dollars to Gold. 

Since then, every country’s money are not back by anything.  They are only back by consumer confidence.  If no one believe the value of the dollar you are holding in your hand, it is valueless.  For example, if you have US$5 and you want to use it in a small town in Africa to buy an apple.  The local people have never seen US Dollars before or they cannot exchange it to their own currency.  Do you think they will accept your money?

The value of a currency depends on circulation, which is how many people are using it and how many people desire it.  At this moment, many people desire bitcoin and many people are using it.  The value of bitcoin will only goes up as more and more people believe in it.

9 thoughts on “Now is the best time to invest in cryptocurrency

  1. Cryptocurrency seems to be gaining more and more popularity as times go by. I thought about it many times in the past but for some reason I was reluctant to try it out. It seems that bitcoin as much popular as it may have become it is still not very trusted in people’s minds. I think this will take many more years until something like this happens and I think by then it will not be so easy to profit from it.

  2. Whether people want to invest in crypto and not; And whether they are fans of it or not, one thing is for sure and that is it’s not going anywhere soon. It really says something too when Facebook has created its own cryptocurrency and plans on releasing it very soon. I have a little bit of trading experience with cryptocurrency and it’s been pretty positive, but people need to learn all they can before jumping into it. 

  3. Hi, Stephen.
    Bitcoins are the rage nowadays but there is very less awareness. Many countries do not recognize bitcoins as legit. Thanks for the information you provided on the timing of investing in bitcoins.
    The good news about Japan legalizing cryptocurrency will be a welcome move to spread its publicity. I use my smartphone to generate bitcoins through App, though it will take a lot of time.
    Warm Regards,
    Gaurav Gaur

  4. I started mining Bitcoin in August 2017 when it was about $4k, and one month after it had doubled in price. One of my big regrets is that I didn’t purchase any when it was just a few cents. The guy who approached me about it was a serial ‘spammer’ and I just deleted his e-mails! 

    I was in financial difficulty at the time and couldn’t even afford the $100 he suggested I should invest. Had I followed his advice, I would never have had to worry about money again – isn’t hindsight a wonderful thing! Having said that, if I’d have got in at that level then I would probably have sold them when they hit about $10 and would have congratulated for making a ‘killing’ with my investment!

    There’s so much speculation about the price not only of Bitcoin but all of the other cryptos out there that in truth nobody knows where it’s going to end up. There are so many worthless cryptos too where the people who launch them do so just to make a quick profit at the ICO before disappearing with their investors money but I believe the likes of Bitcoin, Ethereum, Electronium, Monero and ZCash are here to stay.

    Then of course we had JP Morgan CEO, Jamie Dimon, talking down Bitcoin and then buying up loads following the crash that many believe his comments to have caused. 

    Whilst cryptos might not be backed by physical assets such as Gold, they are subject to market forces unlike FIAT currencies which are subject to the manipulations of governments and central banks. Detractors say that the de-centralization of cryptos removes the ‘trust’, but in place of that trust there is actual PROOF via the public ledger known as the Blockchain and I will take proof over trust (especially trusting a politician or a central banker) any day.

    I believe the current upward trend in cryptos will be a repeat of what happened in 2018. I don’t think this rise will take it to $100k, and I think we will see another spectacular crash again before it goes to that level, but I do think it will get there in the next few years. It’s just a case of ‘hodl’ing throughout the market manipulations by the big players.

    If you weren’t already aware, there’s a very informative book on the whole subject of cryptos called ‘Bitcoin – The Future Of Money’ by Dominic Frisby. I got mine on Amazon for about 8 bucks and I’d recommend it to anybody who want to get informed about crypto.

    1. Hi Richard,

      Thanks for your comment. I will read the book you recommended “The Future of Money”. Bitcoin will never go away because it is supported by millions of users. Many people are using bitcoin everyday to support their business. Many of us have regret that why are don’t buy bitcoin when it was cheap. I have heard it many times.
      I believe cryptocurrency will be one of the common currency in the future. It is independent of our banking system and also we can send money to anyone without anybody knowing.

  5. Thanks for the informative article. I have never used cryptocurrency before, but I have heard of this. I saw many people traded by cryptocurrency in my country before. I am from Bangladesh. In my country, our central bank banned cryptocurrency as per anti-money laundering laws. So now people here can invest in cryptocurrency anymore. 

  6. I have looked into investing in Bitcoin a couple of times now but I’m constantly being told it is way too volatile to get involved with – what are your opinions on this?

    Do you feel it would be best to invest with a large stop loss and no leverage, and wait a year or two? Or, do you feel it’s best to trade a cryptocurrency outright as a ‘day trader’?

    Would love to hear your opinion. 

    1. Hi Chris,

      I think it depends on how you look at it. Volatility is a blessing if you are a day trader, it will give you more trading opportunities to make money. If you really believe in cryptocurrency, you should invest long term. This is how real money is made. Just think about the price history of bitcoin. If you have brought bitcoin when it was $1 and sold it at $10 then you have made quite a bit of money. But if you have kept it until now then you would be rich.

  7. If now is the best time to invest on cryptocurrency, I think I still get hope. If I had stood on how cryptocurrency treated me, I wouldn’t bother to have a glance on it again. But I believe that the definition of failure is when you fall and decided not to rise again. I once believe cryptocurrency is a scam until I started getting some tips from it. If not because of its market volatility, my story would have been something else. It is decentralized,so no one have control over it.

Leave a Reply

Your email address will not be published. Required fields are marked *